Insurer opts for niche markets

INDEPENDENT Insurance, which floated last November, intends to tackle the increasing competition in motor insurance by concentrating further on specialist niches.

Michael Bright, Independent's chief executive, said he expected non-standard business - such as insuring imports and classic cars - to represent more than half the company's motor account by the end of the year.

Despite industry fears of a price war, Mr Bright said signs of increasing competition were not coming through in the non-standard market, which is less price-driven.

A pounds 2m underwriting profit on Independent's motor business gave it a pounds 6m profit on its personal account last year. A pounds 5.2m loss from its involvement in stop-loss insurance for Lloyd's members restricted the overall underwriting profit to pounds 2m, a pounds 9m turnaround from 1992.

Independent's first results as a quoted company show a jump in pre-tax profits from pounds 3.7m to pounds 15.8m. Premium income was up by 52 per cent to pounds 215.7m.

As forecast, Independent is paying a final dividend of 4.75p to give a total payout for the year of 8.25p a share (7p).